UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 10-Q

       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

For the quarterly period ended:             JANUARY 31, 2007
                                       or
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE OF SECURITIES
                              EXCHANGE ACT OF 1934

For the transition period from ____________________ to _________________________

                         Commission File Number: 0-22011

                         SYNOVICS PHARMACEUTICALS, INC.
               (EXACT NAME OF COMPANY AS SPECIFIED IN ITS CHARTER)

          NEVADA                                            86-0760991
-----------------------------                            -------------------
(STATE OR OTHER JURISDICTION OF                           I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                         IDENTIFICATION NUMBER

2575 E. CAMELBACK RD., SUITE 450  PHOENIX, ARIZONA             85016
--------------------------------------------------           ---------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                     (ZIP CODE)

                                  602-508-0112
                 -----------------------------------------------
                (COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE)

         Indicate by check mark whether the Company (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the Company
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                                                Yes [ X ] No [ ]

         Indicate by check mark whether the Company is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one):

Large accelerated filer [ ]  Accelerated Filer [ ]   Non-accelerated filer [ X ]

         Indicate by check mark whether the Company is a shell company (as
defined in Rule 12b-2 of the Exchange Act).
                                                                Yes [ ] No [ X ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

As of March 1, 2007 there were 27,544,630 shares of common stock outstanding.

<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
                            INDEX TO QUARTERLY REPORT
                                  ON FORM 10-Q



                                                                            PAGE
PART I - FINANCIAL INFORMATION

ITEM I.  Financial Statements.

                                    (UNAUDITED)
          Condensed Consolidated Balance Sheets                             3
          Condensed Consolidated Statements of Operations                   4
          Condensed Consolidated Statements of Cash Flows                   5
          Notes to Condensed Consolidated Financial Statements              7

ITEM 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.                                         21

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk.        26

ITEM 4.  Controls and Procedures.                                           26


PART II - OTHER INFORMATION

ITEM 1.  Legal Proceedings.                                                 27

ITEM 1A. Risk Factors.                                                      29

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds.       29

ITEM 3.  Defaults upon Senior Securities.                                   30

ITEM 4.  Submission of Matters to a Vote of Security Holders.               30

ITEM 5.  Other Information.                                                 30

ITEM 6.  Exhibits.                                                          30

SIGNATURES                                                                  31

                                       2
<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                   JANUARY 31,         OCTOBER 31,
                                                                       2007               2006
                                                                  --------------------------------
                                                                   (Unaudited)        (Derived from
                                                                                    audited financial
ASSETS                                                                                 statements)
<S>                                                               <C>                 <C>
CURRENT ASSETS:
  Cash and cash equivalents                                       $  2,770,939        $  2,393,437
  Accounts receivable, net                                           2,590,361           2,037,860
  Inventory                                                          1,902,998           2,376,480
  Prepaid expenses and other current assets                            996,245             922,670
                                                                  ------------        ------------
      Total Current Assets                                           8,260,543           7,730,447
                                                                  ------------        ------------

PROPERTY - Net of accumulated depreciation of $244,069
  and $163,303, respectively                                         2,033,248           1,642,282
                                                                  ------------        ------------

OTHER ASSETS:
  Deposits on equipment and security deposits                           87,548             379,622
  Goodwill                                                          11,447,698          11,447,698
  Deferred financing fees                                            1,683,671           1,967,937
  Intangible assets - net of accumulated amortization of
    $350,687 and $343,113, respectively                             15,707,090          15,714,664
                                                                  ------------        ------------
      Total Other Assets                                            28,926,007          29,509,921
                                                                  ------------        ------------

TOTAL ASSETS                                                      $ 39,219,798        $ 38,882,650
                                                                  ============        ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                                $  3,961,510        $  3,226,664
  Accrued expenses                                                   2,200,192           1,970,277
  Current portion of note payable - bank                             1,000,000           1,000,000
  Current portion of note payable - seller                           1,000,000           1,000,000
  Notes payable - shareholders and others                              100,000             180,929
  Convertible bridge notes                                           4,078,808           3,906,118
  Accrued interest                                                   2,566,898           1,735,174
                                                                  ------------        ------------
      Total current liabilities                                     14,907,408          13,019,162
                                                                  ------------        ------------

LONG-TERM LIABILITIES:
  Deferred revenue                                                     847,335             980,363
  Note payable - bank, net of current maturities                     9,250,000           9,500,000
  Note payable - seller, net of current maturities                   2,000,000           2,000,000
  Capital lease obligations                                            180,710             279,638
                                                                  ------------        ------------
      Total Liabilities                                             27,185,453          25,779,163
                                                                  ------------        ------------

STOCKHOLDERS' EQUITY:
  Preferred stock - $.001 par value - authorized, 5,000,000
    shares; 591,850 and 591,850 issued and outstanding,
      respectively (liquidation preference of $798,998)                798,998             798,998
Common stock - $.001 par value - authorized, 45,000,000 shares;
  27,544,627 and 22,681,725 issued and outstanding,
    respectively                                                        27,094              26,044
Additional paid-in capital                                          62,342,976          61,876,506
Warrants                                                             4,973,540           4,139,972
Accumulated deficit                                                (55,773,463)        (53,403,233)
                                                                  ------------        ------------
                                                                    12,369,145          13,438,287
Subscription receivable                                               (150,000)           (150,000)
Common Stock in Treasury                                              (184,800)           (184,800)
                                                                  ------------        ------------
      Total stockholders' equity                                    12,034,345          13,103,487
                                                                  ------------        ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 39,219,798        $ 38,882,650
                                                                  ============        ============
</TABLE>

See notes to financial statements.

                                       3
<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                    UNAUDITED


<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED
                                                       --------------------------------
                                                         JANUARY 31,         JANUARY 31
                                                           2007                 2006
                                                       ------------        ------------
<S>                                                    <C>                 <C>
REVENUES, net                                          $  5,410,871        $      1,640


COST OF REVENUES                                          4,062,104                 256
                                                       ------------        ------------

                       GROSS PROFIT                       1,348,767               1,384


OPERATING EXPENSES
  Research and development                                  255,000             160,848
  Selling, general, and administrative                    1,715,920             742,831
                                                       ------------        ------------
                       Total expenses                     1,970,920             903,679
                                                       ------------        ------------

                       OPERATING LOSS                      (622,153)           (902,295)
                                                       ------------        ------------


OTHER INCOME (EXPENSES):
  Other income                                              135,295             110,000
  Interest expense, net                                  (1,883,372)           (327,777)
                                                       ------------        ------------

                       Total other (expenses) income     (1,748,077)           (217,777)
                                                       ------------        ------------


NET LOSS BEFORE PROVISION FOR
     INCOME TAX                                          (2,370,230)         (1,120,072)

PROVISION FOR INCOME TAXES                                        -                   -
                                                       ------------        ------------

       NET LOSS FROM CONTINUING OPERATIONS               (2,370,230)         (1,120,072)
       NET LOSS FROM DISCONTINUED OPERATIONS
         Equity in the loss in InCon Processing, LLC              -             (78,433)
                                                       ------------        ------------
NET LOSS                                               $ (2,370,230)       $ (1,198,505)
                                                       ============        ============

BASIC AND DILUTED NET LOSS PER COMMON SHARE
  FROM CONTINUING OPERATIONS                           $      (0.09)       $      (0.05)
                                                       ============        ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING                                              27,544,627          22,681,725
                                                       ============        ============
</TABLE>


See notes to financial statements.

                                       4

<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                                      THREE MONTHS ENDED
                                                                                           JANUARY 31,
                                                                                 -----------------------------
                                                                                     2007             2006
                                                                                 -----------------------------
<S>                                                                              <C>               <C>
OPERATING ACTIVITIES:
Net loss                                                                         $(2,370,230)      $(1,198,505)
Adjustments to reconcile net loss to net cash used in operating activities:
  Depreciation and amortization                                                       88,340             8,619
  Equity in the loss of joint venture                                                                   78,433
  Stock based compensation                                                                 -                 -
  Amortization of bridge loan discount                                               372,690           191,584
  Expenses satisfied with issuance of common stock                                   251,088                 -
  Changes in operating assets and liabilities:
    Accounts receivable                                                             (552,501)                -
    Inventory                                                                        473,482               263
    Prepaids and other current assets                                                (73,575)           14,709
    Accounts payable                                                                 734,846           127,954
    Accrued interest                                                                 831,724                 -
    Accrued liabilities                                                              229,915           (43,225)
    Deferred Revenues                                                                151,238                 -
                                                                                 -----------       -----------
Net cash provided by (used in) operating activities                                  137,017          (820,168)
                                                                                 -----------       -----------

INVESTING ACTIVITIES:
  Purchases of equipment                                                            (179,658)          (13,070)
  Acquisition activities                                                                   -           (85,218)
                                                                                 -----------       -----------
Net cash used in investing activities                                               (179,658)          (98,288)
                                                                                 -----------       -----------

FINANCING ACTIVITIES:
  Issuance of common stock                                                           550,000                 -
  Payment of deferred financing fees                                                 (80,929)         (110,001)
  Proceeds from Debt                                                                 300,000         1,150,000
  Repayment of Debt                                                                 (250,000)          (28,048)
  Repayment of leases                                                                (98,928)                -
                                                                                 -----------       -----------

Net cash provided by financing activities                                            420,143         1,011,951
                                                                                 -----------       -----------


NET INCREASE IN CASH AND
CASH EQUIVALENTS                                                                     377,502            93,495

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                     2,393,437           128,819
                                                                                 -----------       -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                         $ 2,770,939       $   222,314
                                                                                 ===========       ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:
  Cash paid during the period for:
  Interest                                                                       $   263,411       $         0
                                                                                 ===========       ===========

Income taxes                                                                     $         0       $         0
                                                                                 ===========       ===========

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING
AND INVESTING ACTIVITIES:
  Settlement of debt through issuance of common stock                            $   450,000       $    49,500
                                                                                 ===========       ===========
</TABLE>

See notes to financial statements.

                                       5
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note A -          BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

                  The accompanying  unaudited Condensed  Consolidated  Financial
                  Statements of Synovics  Pharmaceuticals,  Inc. (the "Company")
                  have been prepared in accordance  with  accounting  principles
                  generally  accepted  in the United  States of America and with
                  the   instructions   to  Form  10-Q  for   interim   financial
                  information.   Accordingly,   they  do  not  include  all  the
                  information  and footnotes  required by accounting  principles
                  generally  accepted  in  the  United  States  of  America  for
                  complete financial  statements.  In the opinion of management,
                  all adjustments  (which include normal recurring  adjustments)
                  necessary to present fairly the financial position, results of
                  operations and cash flows for all periods  presented have been
                  made.  The results of operations  for the  three-month  period
                  ended   January   31,  2007  and  January  31,  2006  are  not
                  necessarily  indicative of the  operating  results that may be
                  achieved for the entire year ending  October 31,  2007.  These
                  unaudited condensed  consolidated  financial statements should
                  be read in conjunction with the Company's financial statements
                  and  accompanying  notes  thereto as of and for the year ended
                  October 31,  2006.  The  accompanying  condensed  consolidated
                  financial  statements  have been  prepared on a going  concern
                  basis,  which  contemplates  the realization of assets and the
                  satisfaction  of liabilities in the normal course of business.
                  The  Company  has  incurred  accumulated  operating  losses of
                  $55,773,463  through  January  31, 2007 which have been funded
                  through the issuance of stock and debt. The losses incurred to
                  date,   the   uncertainty   regarding  the  ability  to  raise
                  additional  capital and the  Company's  inability  to generate
                  gross profits and positive cash flows from operations indicate
                  that  the  Company  may  not be able  to  continue  as a going
                  concern for a reasonable period of time.

                  PRINCIPLES OF CONSOLIDATION

                  The condensed  consolidated  financial  statements include the
                  accounts  of  Synovics  Pharmaceuticals,  Inc.  and its wholly
                  owned subsidiaries,  including, Kirk Pharmaceuticals,  LLC and
                  ANDApharm,  LLC which were  acquired in May 2006 and  Synovics
                  Laboratories,   Inc.   (collectively   the   "Company").   All
                  significant inter-company transactions have been eliminated in
                  consolidation.


                                       6
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note A -          BASIS OF  PRESENTATION  AND  SIGNIFICANT  ACCOUNTING  POLICIES
                  (CONTINUED)

                  CONCENTRATIONS OF CREDIT RISK

                  The  Company  places  its  cash  balances  with  high  quality
                  financial institutions.  At times, such balances may be in the
                  excess  of the  FDIC  insurance  limit.  The  Company  has not
                  experienced   any  losses  on  such  accounts  and  management
                  believes that there is little risk of loss.

                  Accounts  receivable  are  reported  net of an  allowance  for
                  doubtful  accounts.  The  allowance  is based on  management's
                  estimate  of the amount of  receivables  that will be actually
                  collected.  Management performs on-going credit evaluations of
                  its  customers  and  provides  an  allowance  based on  credit
                  history  and  worthiness  of its  customers.  Receivables  are
                  written off when deemed uncollectible.

                  REVENUE RECOGNITION

                  The Company recognizes revenue upon shipment of product.

                  INVENTORY

                  Inventories  are  stated  at  the  lower  of  cost  (first-in,
                  first-out method) or market.

Note B -          NET LOSS PER COMMON SHARE

                  Basic net loss per share is computed by dividing  the net loss
                  by the weighted  average  number of common shares  outstanding
                  during the presented  periods.  Diluted net loss per share has
                  not  been  presented  as it  was  anti-dilutive.  Options  and
                  warrants  are  excluded  from the  diluted  net loss per share
                  calculation, as they are anti-dilutive.

Note C -          TECHNOLOGY LICENSE AGREEMENT AND ANDA AGREEMENT

                  The Technology License Agreement (the "Technology  Agreement")
                  dated   March   16,   2005    entered    into   with   Nostrum
                  Pharmaceuticals, Inc. ("Nostrum") and the Company, replaced in
                  its entirety  the Product  Development  and License  Agreement
                  dated as of June 16, 2004. Under the Technology Agreement,  as
                  amended,  the Company  received  an  exclusive  license  under
                  Nostrum's oral controlled  release  proprietary  technology to
                  develop and commercialize ten 505(b)(2) products


                                       7
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note C -          TECHNOLOGY LICENSE AGREEMENT AND ANDA AGREEMENT (CONTINUED)

                  (brandable  pharmaceutical  products  that  qualify for filing
                  with the  United  States  Food and  Drug  Administration  (the
                  "FDA")  under  a  "505(b)(2)"  application)  and  ten  generic
                  products  (generic  bio-equivalents  of branded products which
                  qualify for filing with the FDA pursuant to an Abbreviated New
                  Drug  Application)  designated  by the Company  within a three
                  year period.  To date, the Company  designated  four drugs for
                  development  namely  SNG1001a,   SNG1002a,   SNG1003a,b,c  and
                  SNG1004a,b,c.  As consideration for the Technology  Agreement,
                  the Company  issued twelve million shares of its common stock,
                  and agreed to pay  Nostrum  royalties  on net sales of generic
                  products equal to 50% of gross profit. As of January 31, 2007,
                  the Company paid  $1,963,637  to Nostrum as  remuneration  for
                  research and  development  costs  associated with the licensed
                  technology, as well as advanced to Nostrum $250,000 for future
                  invoices associated with the licensed technology.

                  On  May  17,  2006,   the   Company's   subsidiary,   Synovics
                  Laboratories,  Inc.  ("Synovics  Labs")  entered  into an ANDA
                  Ownership  Transfer and Product License Agreement with Nostrum
                  (the  "ANDA  Agreement").   The  ANDA  Agreement   transferred
                  ownership  to  Synovics  Labs  of  an  Abbreviated   New  Drug
                  Application   to  an  AB  rated,   generic  500mg   equivalent
                  (Metformin   ER)  of  the  branded   product   Glucopophage-XR
                  ("Metformin  Drug") and  additionally  grants  the  Company an
                  exclusive license under Nostrum's technology to develop,  make
                  and  sell  the  Metformin  Drug  in  the  United  States.   In
                  consideration   for  the  grant  of  rights   under  the  ANDA
                  Agreement, the Company paid Nostrum a total of $300,000 in two
                  payments of $150,000  each,  one in May 2006 and one in August
                  2006.  Synovics Labs is further required to reimburse  Nostrum
                  for expenses  incurred by it under the ANDA  Agreement and pay
                  royalties  of 20% of net  sales  of the  Metformin  Drug up to
                  $1,500,000.

                  In July 2006, the Company  announced that the FDA had approved
                  the  Company's   Abbreviated  New  Drug  Application  for  the
                  Metformin Drug. The Company is in the process of undertaking a
                  manufacturing site transfer application with the FDA and plans
                  to launch the sales program for the drug following approval.


                                       8
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note D -          NOSTRUM DISPUTE

                  The  Company is  currently  involved in a legal  dispute  with
                  Nostrum over Nostrum's purported  termination of certain drugs
                  covered by the Technology  Agreement  including the four drugs
                  designated by the Company. The dispute also involves Nostrum's
                  purported termination of the ANDA Agreement.

                  On  November  20,  2006,  the  Company  obtained  a  temporary
                  restraining  order from the United States  District  Court for
                  the  Southern  District  of New York  enjoining  Nostrum  from
                  terminating the Technology  Agreement and on December 6, 2006,
                  the Court further extended the order  preliminarily  enjoining
                  Nostrum  from  terminating  the  Technology   Agreement  until
                  January  31,  2007  but  with  respect  to the  four  products
                  designated by the Company.  The Company posted a $100,000 bond
                  in connection with the grant of injunctive  relief. On January
                  31,  2007,   the  Court  further   extended  the   preliminary
                  injunction   pending   the   conduct  of   limited   discovery
                  proceedings.

                  On  December  4,  2006,  the  Company  commenced   arbitration
                  proceedings  against  Nostrum  with the  American  Arbitration
                  Association challenging the purported terminations.

Note E -          2005 BRIDGE NOTE FINANCING

                  In October 2005, the Company began issuing  convertible bridge
                  notes ("2005 Bridge  Notes") and has since issued notes in the
                  principal  amount of  $4,845,000.  The 2005 Bridge  Notes bear
                  interest  at 9% per  annum  and are  convertible  at $3.00 per
                  share at the  option of the  holder.  In the case of  default,
                  interest on the 2005 Bridge  Notes  increases to 18% per annum
                  retroactively to the date of the note on the unpaid principal.
                  The 2005  Bridge  Notes  initially  had a maturity  date of 18
                  months from the date of  issuance.  The 2005 Bridge Notes also
                  provided that if the Company  consummates a "Qualified  Equity
                  Financing" prior to the eighteen (18) month anniversary of the
                  issuance  date,  the  maturity  date would be  extended to the
                  third anniversary of the issuance date. In connection with the
                  issuance of the 2005  Bridge  Notes,  the Company  also issued
                  detachable stock purchase  warrants to purchase 807,493 shares
                  of common stock at $4.00 per share.  The warrants expire three
                  years from the date of issuance.  Based on the  relative  fair
                  values,  the Company has  attributed  $1,429,540  of the total
                  proceeds to the  warrants  and has  recorded  the  warrants as
                  additional paid-in capital and discount to the


                                       9
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -          2005 BRIDGE NOTE FINANCING (CONTINUED)

                  2005 Bridge Notes.  The resulting  discount on the 2005 Bridge
                  Notes is  being  amortized  over  the term of the 2005  Bridge
                  Notes as interest expense. The per share weighted value of the
                  warrants to purchase  807,493  shares of common stock at $4.00
                  per  share is  $4.47.  The  warrants  were  valued  using  the
                  Black-Scholes option pricing model with the following weighted
                  average assumptions: no dividend yield; expected volatility of
                  between 198% and 550%;  risk free interest  rate of 4.9%;  and
                  expected life of 3 years.

                  In connection with the issuance of the 2005 Bridge Notes,  the
                  Company  paid  a  cash   commission   of  $301,050  to  Indigo
                  Securities,  LLC and  issued  to it  three  year  warrants  to
                  purchase approximately 500,000 shares of Common Stock at $5.00
                  per  share  and  75,263  at $4.00  per  share  for its role as
                  placement  agent of a portion of the 2005  Bridge  Notes sold.
                  The per share  weighted  value of the warrants to purchase the
                  combined total of 575,263 shares of common stock is $4.87. The
                  warrants were valued using the  Black-Scholes  option  pricing
                  model with the  following  weighted  average  assumptions:  no
                  dividend  yield;   expected  volatility  of  198%;  risk  free
                  interest rate of 4.9%; and expected life of 3 years.

                  As a result of the  consummation  of the  acquisition  of Kirk
                  Pharmaceuticals,  LLC ("Kirk") and ANDApharm LLC ("ANDApharm")
                  which  was  financed  through  Bank of  India  loans,  and the
                  $6,000,000  equity investment by Maneesh  Pharmaceuticals  PVT
                  LTD. ("Maneesh"),  the Company may have been required to repay
                  its outstanding 9% Convertible Bridge Notes. Accordingly,  the
                  Company  determined  the need to revise  the terms of the 2005
                  Bridge Notes and  solicited  the consent of the holders of the
                  2005 Bridge Notes to convert their 2005 Bridge Notes into, and
                  exchange  their  2005  Bridge  Notes for,  an amended  form of
                  convertible note (the "Revised  Notes")  accruing  interest at
                  the rate of 9% per annum and convertible into shares of Common
                  Stock at the conversion  price of $2.50 per share. The Revised
                  Notes  mature  on  April  3,  2009  and  constitute  unsecured
                  indebtedness   of  the  Company.   Of  the   $4,845,000   then
                  outstanding,  $2,150,000  aggregate principal amount converted
                  to the Revised Notes.  Of the remaining  $2,695,000  aggregate
                  principal amount of 2005 Bridge Notes,  $300,000 was repaid on
                  July 6, 2006 and an aggregate  principal  amount of $2,395,000
                  and all accrued an unpaid interest  thereon matured and became
                  payable on September 1, 2006.


                                       10
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -          2005 BRIDGE NOTE FINANCING (CONTINUED)

                  The Company did not pay any amounts due to the holders of 2005
                  Bridge  Notes on  September  1, 2006 and  requested  that they
                  agree to extend the  maturity  date to  November  1, 2006.  In
                  exchange, the Company offered to increase the interest rate on
                  the  outstanding  principal  amount  to 18% per  annum for the
                  period of such  extension,  as well as to reduce the  exercise
                  price of the warrants  issued with the sale of the 2005 Bridge
                  Notes to $2.50 per share.

                  The Company also did not pay back the  principal to holders of
                  the 2005 Bridge Notes on November 1, 2006 and has not paid the
                  accrued  interest due to the holders of the Revised  Notes and
                  2005 Bridge Notes.

                  The  Company  is  accruing  the   aforementioned  18%  default
                  interest retroactively to the date of issuance of the notes on
                  the unpaid principal.  As of January 31, 2007, the outstanding
                  2005 Bridge Notes and Revised Notes in the aggregate principal
                  amount of $4,545,000 have accrued interest of $477,225.

                  The Company has entered into a registration  rights  agreement
                  in  connection  with  the  sale  of  2005  Bridge  Notes.  The
                  agreement  provides  that  the  Company  file  a  registration
                  statement  with the SEC that  covers the resale of 125% of the
                  registrable securities (the shares issuable upon conversion at
                  the  initial  current  conversion  price and upon  exercise of
                  related   warrants  at  the  initial   exercise   price)  (the
                  "Mandatory Registration Statement").

                  According  to  the  registration  rights  agreement,   if  the
                  Mandatory  Registration  Statement  has not been  declared  or
                  ordered  effective  within one hundred twenty (120) days after
                  the  closing  of the  offering,  the  Company  is to pay  each
                  investor a fee equal to 1% of the purchase  price paid by such
                  investor  for the  securities  purchased  plus  the  aggregate
                  exercise  price  of  the  warrants  and  the  placement  agent
                  warrants for the first two thirty (30) day periods  after such
                  failure and 2.5% of such amount for each subsequent  thirty 30
                  day period (pro rata, in each case, for partial  months).  Any
                  such payments are to be made at the end of each calendar month
                  until the date that the  Mandatory  Registration  Statement is
                  declared  effective.  There is no cap on the maximum amount of
                  the penalties that could be payable under the  agreement.  The
                  Company will recognize the penalties,  if any,  incurred under
                  the  registration  rights agreement as interest expense in the
                  period in which they are incurred.


                                       11
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -          2005 BRIDGE NOTE FINANCING (CONTINUED)

                  Although   the  Company   filed  a   Manadatory   Registration
                  Statement,   the   Company   failed  to  have  the   Mandatory
                  Registration   Statement  declared  effective  and  recognized
                  $1,482,672  of  penalties  as of January 31,  2007,  which are
                  reflected as interest expense.

Note F -          KIRK AQUISITION

                  In May 2006, the Company  consummated  its acquisition of Kirk
                  Pharmaceuticals,   LLC  and  ANDApharm,   LLC   (collectively,
                  "Kirk").  The aggregate  purchase price was  $12,000,000  (the
                  "Purchase  Price") of which (i) $9,000,000 (the "Cash Purchase
                  Price") was paid at the closing and (ii) a promissory  note of
                  the Company  (the "Kirk  Acquisition  Note") in the  principal
                  amount  of  $3,000,000  was  issued to the  sellers.  The Kirk
                  Acquisition Note constitutes a general unsecured obligation of
                  the Company.  In addition,  the Company  incurred an estimated
                  $552,000 of transaction  costs.  The Company has accounted for
                  this acquisition using the purchase method.  $1,385,605 is the
                  fair value of the net  tangible  and  identifiable  intangible
                  assets acquired. The remaining $11,116,314 is accounted for as
                  good will.  The  Company is in the process of  completing  its
                  estimate  of  the   allocation   of  the  purchase   price  to
                  identifiable  and intangible  assets.  The Company  expects to
                  complete the purchase price allocation in April 30, 2007.

                  Kirk  is  a  Florida   based   pharmaceutical   company   that
                  manufactures over-the-counter ("OTC") and generic prescription
                  drugs in its FDA and DEA  approved  facility.  Kirk  currently
                  manufactures  and/or markets  approximately  30 OTC solid dose
                  and  soft gel  pharmaceuticals  and one  generic  prescription
                  drug.  Kirk was founded in 1999 and has grown to more than 120
                  people and occupies 48,301 square feet of manufacturing space.

                  Immediately  prior to the closing of the  acquisition of Kirk,
                  the Company  consummated  two  financings  to satisfy the Cash
                  Purchase  Price  and  its  working  capital  requirements,  as
                  follows:  (i) a credit  facility with Bank of India,  New York
                  Branch (the "Bank of India  Financing");  and (ii) the sale of
                  1,500,000 shares of common stock of the Company to Maneesh, an
                  India-based  accredited  investor at $4.00 per share resulting
                  in gross proceeds of $6,000,000 (the "Maneesh Investment").


                                       12
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note F -          KIRK ACQUISITION (CONTINUED)

                  The Company paid a certain introduction of services fee in the
                  amount of $180,000 and issued three year  warrants to purchase
                  300,000 shares of the Company's  common stock with an exercise
                  price of $6.00 per share  and paid a finders  fee of  $180,000
                  and issued similar  warrants to purchase  45,000 shares of the
                  Company's  common stock for  services  provided in the Maneesh
                  Investment.  The  Company  however  disputes a finder fee to a
                  party believed by the Company to be an affiliate of Dr. Nirmal
                  Mulye in the amount of $525,000  for  services  related to the
                  Bank of India  financing  and has reserved  such amount in its
                  books.

                  The Bank of India  Financing is structured  as senior  secured
                  indebtedness  in the  principal  amount (the  "Principal")  of
                  $10,500,000.  Of the Principal,  $5,250,000 was required to be
                  utilized to satisfy a portion of the Cash  Purchase  Price and
                  $5,250,000  was  required to be utilized  for working  capital
                  purposes (the "Working Capital Loan").  Under the terms of the
                  Working  Capital Loan,  the Company is entitled to borrow from
                  time to time an amount equal to 70% of the value of fully paid
                  inventory and accounts  receivable  together with 100% of cash
                  in accounts  maintained by the Company and its subsidiaries at
                  the Bank of India, or $5,250,000,  whichever is less. The Bank
                  of India  accrues  interest  at the prime rate of  interest as
                  determined by the Bank of India plus 1.0%. In the event of any
                  default,  such interest rate shall  increase to the prime rate
                  of interest as determined by Bank of India plus 3.0%. Interest
                  is  payable  monthly.  The  Principal  is  to be  repaid  with
                  payments that increase over time through December 31, 2010.

                  Prepayments  will be  subject  to a fee  equal  to 1.0% of the
                  amount  prepaid  for each year or  portion  thereof  remaining
                  between the date of prepayment and December 31, 2010.

                  The  obligations of the Company to the Bank of India Financing
                  have   been   guaranteed   jointly   and   severally   by  its
                  subsidiaries.  The Bank of India has a first priority security
                  interest in the  subsidiaries  and assets.  Dr.  Nirmal Mulye,
                  former  Director and Chief  Scientific  Officer of the Company
                  and, according to Schedule 13D, Amendment No. 6, dated January
                  3,  2007,  the   beneficial   owner  of  Nostrum  (which  owns
                  approximately  40% of the  Company's  outstanding  shares) has
                  also guaranteed the obligations to the Bank of India.


                                       13
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note F -          KIRK ACQUISITION (CONTINUED)

                  In connection with the Kirk Acquisition, the seller accepted a
                  $3,000,000  unsecured  convertible  note from  Kirk.  The note
                  bears  interest at 7.5% per annum and matures on May 20, 2009.
                  The note is convertible into the Company's common stock at the
                  lesser of the  conversion  price,  as  defined  or the  option
                  prices set forth under the note payable as follows:

                                                                   Option
                                Option Date                        Price
                        -------------------------           ---------------

                                May 20, 2007                       $2.40
                                May 20, 2008                       $3.40
                                May 20, 2009                       $4.40


                  Interest  expense  under the note  payable was  $156,048 as of
                  January 31, 2007.

                  The  seller has the option for 60 days after each of the first
                  two option  dates  described  above of  electing  to receive a
                  principal payment of $1,000,000  together with all accrued and
                  unpaid interest to such option date.

Note G -          ACQUISITION OF INTANGIBLE ASSET
                  The Company's wholly-owned  subsidiary ANDApharm paid $790,520
                  to Lehigh Valley Technologies and assumed costs of $131,099 to
                  acquire the right to license,  make and sell the generic  form
                  of certain estrogen products.  The transaction was effectuated
                  on May 14, 2006. The intangible  asset is being amortized over
                  its  useful  life  of 5  years  and has a net  book  value  of
                  $844,812 as of January 31, 2007.

Note H -          FOOD AND DRUG ADMINISTRATION CORRESPONDENCE

                  The Company  received a letter dated July 28, 2006 summarizing
                  the  findings  of the  periodic  investigation  by the  United
                  States Food and Drug  Administration  ("FDA")  relating to the
                  Company's recently acquired  subsidiary,  Kirk Pharmaceuticals
                  ("Kirk").  The letter relates a number of  deficiencies in the
                  quality  control  procedures  and  other  processes  of  Kirk.
                  Specifically  and  without  limitation,  the letter  describes
                  discrepancies  in  manufactured   batches  of   pharmaceutical
                  products,  internal  review and record  failures,  failures to
                  follow production and quality control


                                       14
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note H -          FOOD AND DRUG ADMINISTRATION CORRESPONDENCE (CONTINUED)

                  guidelines,   inadequate  training  of  personnel,  inadequate
                  staffing,  and  inadequate  laboratory  controls  and  product
                  labeling.   As  a  result  of  the   Company's  due  diligence
                  investigation of Kirk prior to the closing of the acquisition,
                  the Company  generally  anticipated  the findings set forth in
                  the letter and is in the  process of  establishing  corrective
                  measures to ensure that the  operations and procedures of Kirk
                  address the  deficiencies  identified  in the letter and fully
                  comply with relevant FDA requirements.

Note I -          2006 BRIDGE NOTE FINANCING
                  Between  October and December 2006, the Company's  subsidiary,
                  Kirk,  issued to accredited  investors short term bridge notes
                  in the principal amount of $700,000,  bearing interest ranging
                  from 10% to 20% per annum In connection  therewith the Company
                  issued  warrants to acquire an aggregate of 466,664  shares of
                  its common stock at initial  exercise  prices of between $2.00
                  and  $3.00  per  share   (subject  to  adjustment  in  certain
                  circumstances)  with  exercise  periods  ranging from three to
                  five years. Of the warrants issued, warrants to acquire 75,000
                  shares of the  Company's  common  stock are  exercisable  on a
                  cashless or net issuance basis.  Of the notes issued,  accrued
                  and  unpaid  interest  at  maturity  date  of a  note  in  the
                  principal  amount of $250,000 is  convertible at the option of
                  the holder into 50,000  shares of common stock of the Company.
                  Notes in the principal  amount of $450,000  were  subsequently
                  exchanged  for  units  of  the  2007  Private   Placement  (as
                  discussed below). The per share weighted value of the warrants
                  to purchase 466,664 shares of common stock at initial exercise
                  prices of  between  $2.00  and  $3.00 per share is $2.68.  The
                  warrants were valued using the  Black-Scholes  option  pricing
                  model with the  following  weighted  average  assumptions:  no
                  dividend yield;  expected volatility of between 215% and 225%;
                  risk free interest  rate between 4.5% and 4.84%;  and expected
                  life of between 3 and 5 years.

Note J -          2007 PRIVATE PLACEMENT
                  On January 26, 2007, the Company  completed an initial closing
                  of a private placement ("2007 Private Placement"), whereby the
                  Company  sold an aggregate  of  1,000,000  units  ("Units") to
                  accredited  investors.  Of the 1,000,000  Units sold,  450,000
                  Units were  exchanged  in lieu of repayment of notes issued in
                  the 2006  Bridge Note  Financing  in the  principal  amount of
                  $450,000.


                                       15
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note J -          2007 PRIVATE PLACEMENT (CONTINUED)

                  The price per Unit was  $1.00 and each Unit  consisted  of (i)
                  one share of common stock of the Company, par value $0.001 per
                  share (the "Common Stock"); and (ii) a warrant to purchase, at
                  any time prior to the third  anniversary  following  the final
                  closing of the Private Placement, one share of Common Stock at
                  an exercise price of $3.00 per share, subject to adjustment in
                  certain  instances.  The warrants are also  redeemable  by the
                  Company where the exercise price exceeds a certain amount. The
                  per share weighted value of the warrants to purchase 1,000,000
                  shares  of  common  stock at $3.00  per  share is  $3.00.  The
                  warrants were valued using the  Black-Scholes  option  pricing
                  model with the  following  weighted  average  assumptions:  no
                  dividend  yield;  expected  volatility  between 153% and 155%;
                  risk free interest rate of between 4.63 and 4.9%; and expected
                  life of 3 years.

                  The  subscription  agreement  requires  the  Company to file a
                  registration  statement,  covering the securities  sold in the
                  2007 Private  Placement within 30 days of final closing of the
                  2007 Private  Placement  and use its best efforts to cause the
                  registration  statement to become  effective within 90 days of
                  final  closing.  If the  registration  statement  has not been
                  declared  effective  within 150 days following  final closing,
                  the  Company  has  agreed to pay to the  investors  liquidated
                  damages,  payable  in cash  or  common  stock,  of 1.5% of the
                  purchase  price  paid  by the  investor  in the  2007  Private
                  Placement and 1% of the purchase price paid by the investor in
                  the 2007 Private  Placement for each subsequent 30 day period,
                  with the total of the foregoing capped at 9%.

Note K -          LEASED FACILITIES

                  The Company  leases  office space in Ft.  Lauderdale,  FL, and
                  Phoenix, AZ. Total monthly rent is approximately $45,961 under
                  the lease agreements, which expire at various dates throughout
                  2010.

                  Twelve Months
                  Ending October 31,
                  ------------------

                        2007                 $399,141
                        2008                 $412,850
                        2009                 $430,708
                        2010                 $445,537
                                           ----------
                                           $1,688,236
                                           ==========


                                       16
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note L -          SUBSEQUENT OR SIGNIFICANT EVENTS

                  CONSULTING AGREEMENTS
                  On  February  1, 2007,  the Company  entered  into  consulting
                  agreements  with  each  of  Saggi  Capital  Corp.  and  Bridge
                  Ventures,  Inc.  (each, a  "Consultant")  for the provision of
                  consulting   services   (including   investor   relations  and
                  strategic consulting) by the Consultants. Under the consulting
                  agreements,  each Consultant is entitled to receive $5,000 per
                  month during the term of the agreement and five-year  warrants
                  to acquire 200,000 shares of the Company's  common stock,  par
                  value  $0.001 per  share,  at an  exercise  price of $2.00 per
                  share, subject to adjustment in certain circumstances, or on a
                  cashless  or net  issuance  basis.  The  initial  term  of the
                  consulting agreements was initially twelve months,  extendable
                  for  additional  one-year  periods,  and may be  terminated by
                  either party upon thirty days prior written  notice.  On March
                  13, 2007,  the consulting  agreements  were amended to set the
                  term for a fixed  twenty  four  month  period.  The per  share
                  weighted  value of the warrants to purchase  400,000 shares of
                  common stock at $2.00 per share is $2.00.  The  warrants  were
                  valued using the  Black-Scholes  option pricing model with the
                  following  weighted  average  assumptions:  no dividend yield;
                  expected volatility of 153%; risk free interest rate of 4.84%;
                  and expected life of 5 years.

                  VCG
                  On February 1, 2007,  the Company  entered  into a  consulting
                  agreement (the "VCG Agreement") with VCG & A, Inc. ("VCG") for
                  the  provision  of  consulting  services  by VCG that  include
                  assisting  the Company in its  capital  raising  efforts,  the
                  development of an overall  business  strategy and the purchase
                  of a certain key drug product ("Target Product") as well as to
                  assist the Company in ongoing management,  sales and marketing
                  support.. The initial term of the VCG Agreements is six months
                  (the "Initial Term") and shall be automatically renewed for an
                  additional six months (the  "Extended  Term" and together with
                  the Initial Term, the "Term"), unless terminated by either the
                  Company or VCG by providing  60 days  written  notice prior to
                  the end of the Initial Term or Extended Term, as applicable.


                                       17
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note L -          SUBSEQUENT OR SIGNIFICANT EVENTS (CONTINUED)

                  Under the VCG  Agreement,  the  Company  has agreed to pay VCG
                  cash fees and royalties based upon the net sales of the Target
                  Product. In addition, VCG is entitled to receive stock options
                  to purchase  300,000 shares of the Company's common stock, par
                  value  $0.001 per share,  at an exercise  price of $1.40.  The
                  stock options  vested  immediately  upon  execution of the VCG
                  Agreement.  The per share  weighted  value of the  options  to
                  purchase  300,000 shares of common stock at $1.40 per share is
                  $1.40. The warrants were valued using the Black-Scholes option
                  pricing model with the following weighted average assumptions:
                  no dividend  yield;  expected  volatility  of 153%;  risk free
                  interest rate of 4.84%; and expected life of 5 years.

                  2007 PRIVATE PLACEMENT
                  Between  February 5, 2007 and February  15, 2007,  the Company
                  completed  subsequent  closings of an additional 500,000 Units
                  raising an additional $500,000.

                  NOSTRUM DISPUTE
                  On February 20, 2007, the United States District Court for the
                  Southern   District  of  New  York  extended  its  preliminary
                  injunction  against  Nostrum  until April 30, 2007 and further
                  enjoined  Nostrum from  terminating  the ANDA Agreement  until
                  April 30, 2007;  the  foregoing  conditioned  upon the Company
                  increasing  its previously  posted bond to $500,000,  which it
                  subsequently posted.

                  On March 2,  2007,  the  Company  commenced  a lawsuit  in the
                  United  States  District  Court for the District of New Jersey
                  against  Nirmal  Mulye  ("Mulye"),  Anil Anand  ("Anand")  and
                  Nostrum. The lawsuit alleges that (i) Mulye breached fiduciary
                  duties and usurped corporate  opportunities as a former member
                  of  the   Company's   Board  of  Directors  and  former  Chief
                  Scientific  Officer  and that  Anand  and  Nostrum  aided  and
                  abetted Mulye in such actions,  (ii) Mulye,  Anand and Nostrum
                  tortiously  interfered with prospective  business advantage of
                  the Company,  (iii) Mulye fraudulently  induced the Company to
                  enter in certain financial transactions, and (iv) Mulye, Anand
                  and Nostrum  conspired  to breach  fiduciary  duties and steal
                  valuable corporate opportunities.


                                       18
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note L -          SUBSEQUENT OR SIGNIFICANT EVENTS (CONTINUED)

                  FIRST MIRAGE
                  As part of the 2005 Bridge Note Financing,  the Company issued
                  to First Mirage,  Inc. ("First  Mirage") a convertible  bridge
                  note in the  principal  amount of $100,000  (the "First Mirage
                  Note").  As a result of the Company  being late in the payment
                  on the principal and interest under this First Mirage Note, on
                  March 6, 2007 the Company  renegotiated  the First Mirage Note
                  by entering into an agreement with First Mirage dated February
                  2,  2007  to  further  amend  the  First  Mirage  Note  ("Note
                  Amendment").

                  Pursuant to the terms of the Note Amendment, the maturity date
                  of the First  Mirage Note was  extended to May 31,  2007,  the
                  Company may prepay the Note on ten days prior written  notice,
                  and the  principal  and/or  interest  under  the  Note  may be
                  exchanged  in certain  instances by both the Company and First
                  Mirage for  shares of common  stock of the  Company.  The Note
                  Amendment  also  provides  that if the Company fails to timely
                  deliver the shares of Company's common stock exchanged for the
                  First  Mirage  Note to First  Mirage in the case  where  First
                  Mirage  initiates  the exchange or if Company  fails to timely
                  file a report  required under the  Securities  Exchange Act of
                  1934,  the Company  will incur a penalty in the form of shares
                  of Company's common stock to be delivered to First Mirage.


                                       19
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.

ITEM 2.           MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF FINANCIAL  CONDITION
                  AND RESULTS OF OPERATIONS

         The following  discussion  and analysis  should be read in  conjunction
with the  Condensed  Consolidated  Financial  Statements,  the related  Notes to
Consolidated  Financial  Statements and Management's  Discussion and Analysis of
Financial  Condition and Results of Operations  included in the Company's Annual
Report on Form 10-K for the fiscal year ended  October 31, 2006 (the "10-K") and
the Unaudited Condensed  Consolidated  Financial Statements and related Notes to
Condensed Consolidated Financial Statements included in Item 1 of Part I of this
Quarterly Report on Form 10-Q.

         The   Company   has   included  in  this   Quarterly   Report   certain
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995 concerning the Company's business,  operations and
financial condition.  "Forward-looking statements" consist of all non-historical
information,   and  the  analysis  of  historical  information,   including  the
references in this  Quarterly  Report to future revenue  growth,  future expense
growth, future credit exposure,  earnings before interest,  taxes,  depreciation
and amortization, future profitability,  anticipated cash resources, anticipated
capital expenditures,  capital requirements,  and the Company's plans for future
periods. In addition, the words "could", "expects", "anticipates",  "objective",
"plan",  "may affect",  "may depend",  "believes",  "estimates",  "projects" and
similar  words and phrases are also  intended to identify  such  forward-looking
statements.

         Actual  results  could differ  materially  from those  projected in the
Company's forward-looking statements due to numerous known and unknown risks and
uncertainties,   including,  among  other  things,  unanticipated  technological
difficulties,  the  volatile  and  competitive  environment  for  drug  delivery
products,  changes in  domestic  and  foreign  economic,  market and  regulatory
conditions, the results of development agreements with pharmaceutical companies,
the  inherent   uncertainty  of  financial   estimates  and   projections,   the
uncertainties involved in certain legal proceedings,  instabilities arising from
terrorist actions and responses thereto, and other  considerations  described as
"Risk Factors" in other filings by the Company with the SEC including its Annual
Report on Form 10-K. Such factors may also cause  substantial  volatility in the
market price of the Company's common stock. All such forward-looking  statements
are current only as of the date on which such  statements were made. The Company
does not  undertake  any  obligation  to  publicly  update  any  forward-looking
statement to reflect  events or  circumstances  after the date on which any such
statement is made or to reflect the occurrence of unanticipated events.

OUR BUSINESS

         Synovics  Pharmaceuticals,  Inc. is a specialty  pharmaceutical company
focusing  on  the  development  of  oral  controlled-release  drug  formulations
utilizing  proprietary drug formulations and delivery  technologies,  as well as
develop, market and sell private label


                                       20
<PAGE>

Over-the-Counter  ("OTC")  and  generic  prescription  drugs  through  its newly
acquired  operating  subsidiaries,   Kirk  Pharmaceuticals,   Inc  ("Kirk")  and
ANDApharm, LLC ("ANDApharm").

GENERAL

         The Company is a  developing  company and is  anticipating  a period of
losses and negative cash flows while it works on integrating  Kirk and ANDApharm
into  the  Company,  boosts  Kirk and  ANDApharm's  operating  efficiencies  and
develops and commences  commercialization of its planned products. The Company's
future  operating  results  will  depend  largely on its  ability to achieve the
following:

         -        Debt  and  equity   financing  to  support  the  research  and
                  development activities and service its debt;

         -        Favorable outcome in its dispute with Nostrum;

         -        Successful integration of Kirk and ANDApharm;

         -        Successful  implementation  of improvements and method changes
                  in the operations at Kirk and ANDApharm to increase output and
                  revenues;

         -        Successful development and testing of product candidates;

         -        Receipt of required  regulatory  approvals  related to product
                  candidates;

         -        Commercialization of the Company's products;

         -        Gaining a competitive position in the market.

RESULTS OF OPERATIONS

         THREE MONTHS ENDED  JANUARY 31, 2007  COMPARED  WITH THREE MONTHS ENDED
JANUARY 31, 2006.

         Consolidated  gross revenues for the quarter ended January 31, 2007 was
$5,410,871  compared to $1,640 for the same  quarter in 2006.  This  increase in
revenue  represents  sales from Over the Counter products of the Company's newly
acquired  subsidiary,  Kirk and the generic  prescription  drug of the Company's
other  newly  acquired  subsidiary,  ANDApharm. Kirk's  four  largest  customers
represented  approximately 65% of the sales for the period. Although the Company
believes Kirk has good working relationships with each of these customers,  Kirk
is working to further  relationships  with these and other  entities in order to
broaden its sales base.

         Sales of products  containing  ephedrine and guaifenisen  accounted for
approximately 75% of sales. These products have come under increasing government
regulation   due  to  the  concern  of  these  products  in  the  production  of
methamphetamine.  These  regulatory  changes  have  affected  the way  that  the
products  are packaged  and how they may be  displayed  in retail  outlets.


                                       21
<PAGE>

         Both  Kirk   Pharmaceuticals  and  ANDApharm  are  subject  to  various
regulatory  bodies  including  the DEA and FDA. The Company  believes  that each
subsidiary's relationship with both of these regulatory bodies is good. In July,
2006 Kirk  underwent an inspection by the FDA. The  inspection was in the normal
course of  business,  as Kirk's  prior  inspection  exceeded  two years ago. The
inspection pointed out several shortcomings in Kirk's operations.  However, Kirk
cooperated  fully  with  the FDA  inspectors,  has  responded  to the FDA and is
working  diligently  to  correct  the  weaknesses  that were  noted  during  the
inspection. The Company and each subsidiary has and will continue to comply with
the requirements of the regulatory agencies.

         Cost of revenues for the three month period ended  January 31, 2007 was
$4,062,104  compared to $256 for the three month period ended  January 31, 2006.
This increase in cost of revenue  represents the costs associated with the sales
from over-the-counter products of the Company's newly acquired subsidiary,  Kirk
and from the generic  prescription  drug of the Company's  other newly  acquired
subsidiary, ANDApharm.

         Research  and  development  expenses  for the three month  period ended
January 31, 2007 was  $255,000  compared to $160,848  for the three month period
ended  January  31,  2006.  This  increase  is due  primarily  to  research  and
development  activities  at Kirk and  ANDApharm.  The research  and  development
expenses are in line with  historical  norms of the acquired  subsidiaries,  and
contain no  significant,  unusual  expenses.  Research and  development  expense
consists of direct costs which  include  salaries and related  costs of research
and development personnel, and the costs of consultants,  materials and supplies
associated with research and development  projects, as well as clinical studies.
Indirect research and development costs include  facilities,  depreciation,  and
other indirect overhead costs.

         Selling,  general,  and  administrative  expenses  for the three  month
period  ended  January 31, 2007 was  $1,715,920  as compared to $742,831 for the
three month period ended  January 31, 2006.  This  increase is due  primarily to
operating activities  associated with the Company's newly acquired  subsidiaries
and an increase in salaries,  consulting, travel, accounting and legal expenses.
The  operating  expenses  are in line  with  historical  norms  of the  acquired
subsidiaries, and contain no significant, unusual expenses.

         The net loss of  $2,370,230,  or $.09 per  share,  for the three  month
period ended  January 31, 2007 as compared to  $1,198,505  or $.05 per share for
the three month period ended January 31, 2006 was due primarily  cash to support
operations, interest accruing


                                       22
<PAGE>

on  the  Company's   indebtedness,   penalties   accruing  for  failure  of  its
registration statement to become effective,  expenses attributed to warrants and
mounting legal fees. The Company also expects  cumulative losses to increase due
to its research and  development  activities  related to the  development of new
product candidates.

LIQUIDITY AND CAPITAL RESOURCES

         To  date,  the  Company's  operations  have  not  generated  sufficient
revenues to satisfy  the  Company's  operating  capital  needs.  The Company has
financed its operations primarily through the sale of its common stock, warrants
and debt by means of  private  placements.  The  Company  had a working  capital
deficit of  $6,646,865  at January 31, 2007 as compared  with a working  capital
deficit of  $5,288,715  at January  31,  2006.  Cash and cash  equivalents  were
$2,770,939 at January 31, 2007, as compared with $222,314 at January 31, 2006.

         Net cash used in  operating  activities  during the three month  period
ended January 31, 2007 was  $137,017.  This resulted from the Company's net loss
of  $2,370,230.  The Company has  generally  incurred  negative  cash flows from
operations since inception,  which will continue due to the Company's short term
and long term debt obligations, penalties accruing on its registration statement
not becoming effective,  research and development activities,  costs of boosting
operating efficiencies of Kirk and ANDApharm and mounting legal expenses.

         Net cash used in  investing  activities  during the three month  period
ended January 31, 2007 was $179,658.

         Net cash provided by financing activities during the three month period
ended  January 31, 2007 was $420,143  which  resulted from the net proceeds from
the  issuance of notes and  warrants in the 2006 Bridge Note  Financing  and the
sale of units of the  Company's  common  stock and  warrants in the 2007 Private
Placement.

         The  Company  did not  enter  into  any  material  capital  expenditure
agreements,  nor did it engage in any off  balance  sheet  financing  during the
reporting period.

         The  Company's   auditors  have  expressed  in  their  audit  report  a
qualification  as to the Company's  ability to continue as a going concern.  See
Note A of the Notes to the Consolidated Financial Statements.

         The Company is currently  delinquent in its obligation to bring current
principal and interest  payments of certain notes issued in the 2005 Bridge Note
Financing.  The Company has undertaken a capital  raising effort to address this
however there is no assurance that the Company will be successful in this effort
or that none of the note  holders  will file an action  against  the Company for
default.

         All trends, demands, commitments, events and uncertainties resulting in
a material  increase or decrease in liquidity have been  reported.  All internal
and  external  sources  of  liquidity  have been  identified,  and all  material
commitments  of  capital  expenditures  as of the end of the  quarter  have been
identified.

                                       23
<PAGE>

FUTURE CAPITAL REQUIREMENTS

         Many of the  Company's  product  candidates  are in the early stages of
research and development,  and will require  additional  research,  development,
clinical  testing,   regulatory  approval,   and  a  commitment  of  significant
additional resources prior to commercialization.  Based on its current operating
plan,  the Company  believes it will have to increase  its capital  resources to
meet its debt obligations, mounting legal expenses from its dispute with Nostrum
and operating and product  development  plan through the fourth quarter of 2007.
The  Company  plans to  continue  its  efforts to raise  financing  through  the
issuance  of  additional  debt or equity  financing.  The Company can provide no
assurance that additional debt or equity funding will be obtained. The Company's
future  capital  requirements  will  depend  on  many  factors,   including  the
following:

         -        Continued scientific progress in its research,  drug discovery
                  and development plan;

         -        Integration costs of Kirk and ANDApharm;

         -        Size of its program and progress with clinical trials;

         -        Time and costs associated with regulatory approvals;

         -        Recruitment of key management;

         -        Impact of pending and potential litigation.

         We also intend to further  explore  strategic  alliances  and licensing
agreements with other  pharmaceutical  companies to generate  revenues,  but can
give  no  assurance  that  any of  these  efforts  will  be  successful  or meet
expectations.


                                       24
<PAGE>

ITEM 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

         The  Company  does  not  invest  in or own any  market  risk  sensitive
instruments entered into for trading purposes or for purposes other than trading
purposes.  All loans to the Company  have been made with fixed  interest  rates,
and, accordingly,  the market risk to the Company prior to the maturity of those
instruments is minimal.

ITEM 4.           CONTROLS AND PROCEDURES.

         As of the end of the period  covered by this report,  we carried out an
evaluation,  under the  supervision  of our Chief  Executive  Officer  and Chief
Financial  officer,  of the  effectiveness  of the design and  operation  of our
disclosure  controls and procedures as defined in Rules  13a-15(e) and 15d-15(e)
of the Securities  Exchange Act of 1934. Based upon that  evaluation,  our Chief
Executive  Officer and Chief  Financial  Officer  concluded  that our disclosure
controls and procedures were not effective to ensure that  information  required
to be disclosed by us in the reports filed or submitted by us under the Exchange
Act is accumulated,  recorded, processed, summarized and reported to management,
including  our  Chief  Executive  Officer  and  Chief  Financial   Officer,   as
appropriate,  and to allow timely decisions  regarding whether or not disclosure
is required. We are taking steps to remedy this deficiency through a combination
of  increased   documentation,   increasing  the  accounting   staff,   engaging
independent  auditors  to provide  us with  accounting  advice and  implementing
internal procedures including the distribution of documents.  These deficiencies
are being  reported  to our Board of  Directors  and we  intend to  improve  and
strengthen our controls and procedures.


                                       25
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS.

            As previously  reported in the Company's  Current Reports on Form 8K
dated  November 3, 2006 and December 6, 2006, the Company is involved in a legal
dispute with Nostrum Pharmaceuticals, Inc. ("Nostrum"), the entity from whom the
Company has  acquired its primary  technology  under  development.  Nostrum owns
approximately  40% of the Company's  outstanding  stock and as disclosed in that
certain Schedule 13D,  Amendment No. 6, dated January 3, 2007,  Nirmal V. Mulye,
Ph. D., beneficially owns all the outstanding stock of Nostrum. In addition, Dr.
Mulye  resigned from his  positions  with the Company as a Director in September
2006 and as Chief Scientific Officer in January 2007.

         The Company's rights to Nostrum's technology arise out of two principal
agreements,  a Technology  License  Agreement  and ANDA  Ownership  Transfer and
Product License Agreement.  The Technology License Agreement between the Company
and Nostrum dated as of March 16, 2005, as amended (the "Technology  Agreement")
grants the Company an exclusive license under Nostrum's oral controlled  release
proprietary technology to develop, make and sell exclusively and worldwide,  ten
generic and ten 505(b)(2)  drugs (improved  formulations of previously  approved
drugs),  which drugs are to be  designated  by the Company.  The ANDA  Ownership
Transfer  and  Product  License  Agreement  between  the  Company's  subsidiary,
Synovics  Laboratories,  Inc.  ("Synovics  Labs") and Nostrum dated May 17, 2006
(the  "ANDA  Agreement"  transferred  ownership  of  an   abbreviated  new  drug
application ("ANDA") to an AB rated, generic 500mg equivalent  (Metformin ER) of
the branded product Glucophage-XR (the "Metformin Drug") and additionally grants
the  Company an  exclusive  license  under  Nostrum's  oral  controlled  release
proprietary  technology  to  develop,  make and sell the  Metformin  Drug and an
additional strength version of the Metformin Drug in the United States.

         To date, the Company designated four drugs for development  pursuant to
the  Technology   Agreement,   namely  SNG1001a,   SNG1002a,   SNG1003a,b,c  and
SNG1004a,b,c,  and  intended  to invest the  majority  of its  resources  in the
development  and  commercialization  of these and other  drugs to be  designated
under the Technology Agreement during the next few years.

         However, in September, October and November, 2006, the Company received
a series of written  notices  from  Nostrum  purporting  to  terminate:  (i) the
Company's  rights to four drugs  designated by the Company under the  Technology
Agreement, and (ii) the ANDA Agreement.  Each notice purports to be effective as
of the  sixtieth  (60th)  day  from the date of the  Company's  receipt  of such
notice.  The notices  also  purported to  terminate  five other drugs  allegedly
covered by the Technology Agreement.


                                       26
<PAGE>

         The Company  believes  that these  termination  notices  are  factually
incorrect and are contrary to the terms of the Technology Agreement and the ANDA
Agreement.  Although labeled a "termination" by Nostrum and inclusion by Nostrum
of a request to  terminate  the ANDA  Agreement,  the  letters  received  by the
Company are, in effect,  a notice under the  agreement of a dispute  between the
parties and requires the parties to, upon  completion of the exchange of certain
notices, enter into arbitration with respect to such dispute.

         On November  17,  2006,  the Company  commenced an action in the United
States District Court for the Southern  District of New York against Nostrum and
on November 20, 2006, the Court granted a temporary  restraining order enjoining
Nostrum from  terminating  the  Technology  Agreement.  On December 6, 2006, the
Court extended the order enjoining the  termination of the Technology  Agreement
but  only  with  respect  to  the  four  drugs  designated  by the  Company  for
development pursuant to the Technology Agreement. The injunction was conditioned
upon the  Company  having  posted a bond in the  amount of  $100,000,  which was
subsequently  posted. On February 20, 2007 the Court  subsequently  extended the
injunction  until April 30, 2007 and further  enjoined  Nostrum from terminating
the ANDA Agreement.  The Court  conditioned such extension on an increase in the
bond to $500,000, which was subsequently posted.

         On December 4, 2006,  the Company filed a demand for  arbitration  with
the American  Arbitration  Association,  pursuant to the terms of the Technology
Agreement, challenging the propriety of the purported terminations. The Company,
on  January  11,  2007,  amended  its  statement  of  claim  with  the  American
Arbitration Association to include the claims related to the improper attempt to
terminate  the ANDA  Agreement,  and to add Synovics  Labs, a subsidiary  of the
Company, as a party.

         Synovics  Labs, on January 12, 2007,  filed a complaint with the United
States  District  Court for the Southern  District of New York seeking to enjoin
Nostrum from terminating the ANDA Agreement.  That action has been  consolidated
with the previously-filed action relating to the Technology Agreement.

         The Company intends to pursue  vigorously and  aggressively all further
avenues  necessary  and  remedies  available  to protect  its  rights  under the
Technology  Agreement and the ANDA Agreement,  the assets of the Company and the
reflective  value for the Company's  shareholders.  However,  we cannot make any
representations  as to when the  disputes  with Nostrum will be resolved and the
effect  such  resolution,  if any,  and the  resignation  of Dr.  Mulye as Chief
Scientific Officer will have on the Company's technology plans.

         Each  of  Dr.  Mulye  and  Nostrum  is a  guarantor  of  the  Company's
obligations  under a Credit  Agreement,  dated as of May 22,  2006  between  the
Company and the Bank of India for a credit facility of up to $10,500,000.

         ANDApharm and its former  controlling  person John S. Copanos are being
sued by in action that  commenced on December 15, 2005, in the Court of the 15th
Judicial  Circuit  in  and  for  Palm  Beach  Count,  Florida.  by  Breckenridge
Pharmaceutical, Inc.


                                       27
<PAGE>

("Breckenbridge"),  a distributor  not selected by ANDApharm to  distribute  its
esterified  estrogen product.  The complaint  alleges that ANDApharm  breached a
distribution  contract with Breckenridge,  misappropriated  Breckenridge's trade
secrets  and  sought  an  injunction  against  ANDApharm.  Management  has  been
negotiating a potential settlement of the dispute and anticipates  settlement of
the case will be reached shortly.

ITEM 1A.          RISK FACTORS.

         The  Company  has  had no  material  changes  to its  risk  factors  as
previously  disclosed in its Form 10-K for the year ended October 31, 2006 filed
with the Securities and Exchange Commission on January 30, 2007.

ITEM 2.           UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

         During  the  three  months  ended  January  31,  2007,   the  Company's
subsidiary,  Kirk, issued to accredited investors short term bridge notes in the
principal amount of $550,000, bearing interest ranging from 10% to 20% per annum
and in connection  therewith the Company issued warrants to acquire an aggregate
of 366,664  shares of its common stock at an initial  exercise  price of between
$2.00 and $3.00 per share (subject to adjustment in certain  circumstances) with
exercise  periods  ranging  from three to five  years.  Of the short term bridge
notes  issued,  accrued and unpaid  interest  at maturity  date of a note in the
principal  amount of  $250,000 is  convertible  at the option of the holder into
50,000  shares of common  stock of the  Company.  Of the short term bridge notes
issued  during the three months ended  January 31, 2007,  notes in the principal
amount of $300,000  were  subsequently  exchanged  for units of the 2007 Private
Placement (as discussed below).  The notes and warrants were offered and sold to
investors in reliance upon exemptions from registration pursuant to Section 4(2)
under the Securities Act of 1933, as amended.

         On January 26,  2007,  the Company  completed  an initial  closing of a
private  placement,  whereby the Company sold an  aggregate  of 1,000,000  units
("Units") to  accredited  investors as defined by Rule 501 under the  Securities
Act of 1933, as amended (the  transaction  is referred to herein as the "Private
Placement").  Of the 1,000,000 Units sold,  450,000 Units were exchanged in lieu
of repayment of the short term bridge notes in the principal amount of $450,000.
The price per Unit was $1.00 and each Unit  consisted of (i) one share of common
stock of the Company,  par value $0.001 per share (the "Common Stock"); and (ii)
a warrant to purchase,  at any time prior to the third anniversary following the
final closing of the Private Placement, one share of Common Stock at an exercise
price of $3.00 per  share,  subject to  adjustment  in  certain  instances.  The
warrants are also  redeemable by the Company where the exercise  price exceeds a
certain  amount.  The shares and warrants  were offered and sold to investors in
reliance upon  exemptions from  registration  pursuant to Section 4(2) under the
Securities Act of 1933, as amended, and Rule 506 promulgated thereunder.

         THIS  DISCLOSURE IS NOT AN OFFER OF SECURITIES FOR SALE. ANY SECURITIES
SOLD IN THE PRIVATE PLACEMENT WILL NOT HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933,  AS  AMENDED,  AND MAY NOT BE OFFERED OR SOLD IN THE UNITED  STATES
UNLESS  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR PURSUANT TO
AN EXEMPTION FROM SUCH REGISTRATION.

                                       28
<PAGE>

ITEM 3.           DEFAULTS UPON SENIOR SECURITIES.

         Between  October 2005 and April 2006,  the Company  issued  convertible
bridge  notes  bearing  interest  at a rate of 9% per  annum as part of its 2005
Bridge Note Financing.  As of the date of this filing, the Company is delinquent
in its payment of the  principal  and  interest to certain  holders of the notes
issued in the 2005  Bridge Note  Financing  in the amount of  $5,140,395,  which
indebtedness exceeds 5% of our total assets.

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.

ITEM 5.           OTHER INFORMATION.

         None.

ITEM 6.           EXHIBITS.

         Exhibits

         31.1     Certification  of Chief  Executive  Officer  pursuant to Rules
                  13a-14(a) and 15d-14(a) of the Securities Exchange Act

         31.2     Certification  of Chief  Financial  Officer  pursuant to Rules
                  13a-14(a) and 15d-14(a) of the Securities Exchange Act

         32.1     Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section  1350,  as  adopted  pursuant  to  Section  906 of the
                  Sarbanes-Oxley Act of 2002

         32.2     Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section  1350,  as  adopted  pursuant  to  Section  906 of the
                  Sarbanes-Oxley Act of 2002


                                       29
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.


                                    SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Company  has duly  caused  this  report to be  signed on its  behalf by the
undersigned thereunto duly authorized.


                                  SYNOVICS PHARMACEUTICALS, INC.
                                  (Company)



Date:  March 22, 2007              By:  /s/ Ronald H. Lane
                                        ---------------------------------------
                                        Ronald H. Lane
                                       (President, Chief Executive Officer, and
                                        Principal Financial Officer)



                                       30